Intel Corporation (INTC) stock has the scope to extend higher as we can see in the monthly and weekly charts. Based on the proprietary tools ElliottWave-Forecast.com has implemented we will analyze below INTC in the Weekly time frame based 2 degrees.

1. Swing Sequence
2. Elliott Wave Structure

Basic information about the Intel Corporation

According to Wikipedia; INTEL is an American multinational corporation and technology company. Headquartered in Santa Clara, California “Silicon Valley”, INTEL was founded by Gordon Moore and Robert Noyce. The INTEL Corp is the second highest valued semiconductor chip maker based on revenue.

Beyond manufacturing the x86 series microprocessors and supplying large scale corporations with such as Apple, Lenovo, HP and Dell, INTEL manufactures as well other electronic components such as:

• Motherboard Chipsets
• Network Interface Controllers and Integrated Circuits
• Flash Memories
• Graphics Chips
• Embedded Processors and other Devices related to Communications and Computing.

Intel's Competition

According to Investopedia, Intel's competitors in the PC client operating and revenue segment are AMD (AMD), IBM (IBM) and NVidia (NVDA). Lately we have seen some pressure building from Qualcomm (QCOM) after Microsoft (MSFT) and Google (GOOGL) try to replace data center microprocessors with cheaper and more power efficiency from Qualcomm.

Intel's Competition in Detail

Most noteworthy, Intel’s direct competition is AMD. Lately we have seen things getting hot in the field of microprocessors. AMD has introduced a new series of multi core microprocessors code named Ryzen in the pursuit to enter Intel’s high end performance desktop platform. AMD is also trying to catch up with NVidia’s latest improvements introduced with Vega APU’s. For the reason, Intel has responded with a new microprocessor series code named Core-X. The new generation series include Core I3, I5, I7 processors  and introducing a brand new model, the Core I9.

The new and improved technology in microprocessors arrived shortly after Microsoft acknowledged the intention to end Intel’s dominance in the cloud server semiconductor market. Microsoft announced that is teaming up with Qualcomm by using ARM processors for servers. Furthermore, Microsoft announced that would use ARM technology processors for Windows 10 as well later in 2017. During the presentation Microsoft demonstrated Windows 10 running from a Qualcomm 835 ARM microprocessor. Apple (AAPL) has been following the same path with Cortex ARM processors for the iPhone but still working with Intel for Desktops while ARM processors luck Intel’s performance.

Weekly Chart – INTC Projection

Without any further delay let's jump into INTC Weekly Chart.

Intel in the weekly time frame is showing a diagonal formation from the 02/2009 cycle lows. The 02/2009 cycle was completed at the 37.80’s peak from where the correction in wave ii started. Hence, at this stage it seems like we have a wave i or a alternatively in place for cycle 02/2009.

From there corrected by 50% the 02/2009 cycle in a classical Zig Zag formation which marked wave ii. Price bounced up again and created new highs up to 38.20’s, a fact suggesting we should continue higher while price holds above the invalidation level at the 24.80’s. While that is the case, we are looking for the first set of equal legs (100%) – 1.236% extension at the zone of 46.90’s – 50.10’s which at this stage we would like to set as a target zone.

To Sum up – INTC Projection:

Finally and most importantly, to confirm the move higher we need to see a break above the 01/27/2017 peak. A break above there should provide an extension to the next level of the 41.70 – 43.70 zone. Furthermore, after short term pullbacks we should continue higher again. At the 46.90 we should hit the equal legs of the wave ((1)) – ((2)) swing in black yet there will be room for some extension higher to the 1.236% extension at the 50’s since at that level are the equal legs of the i – ii swing as well.

In contrast, a failure at this levels could indicated a double correction against the 08/2015 cycle. The 08/2015 cycle starts from wave ii red at the 24.80’s. Because INTC is bullish we won’t consider the short side if the double correction ends to be the case but in contrast buy the 3rd swing when it reaches the equal legs – 1.236% extension lower.